Friday, February 1, 2013

Massive $114 Bilion withdrawals from 25 Largest US Banks in the 1st Week of JAN 2013


Massive $114 Bilion withdrawals from 25 Largest US Banks in the 1st Week of JAN 2013

It appears that the expiring expanded FDIC insurance has in fact triggered a massive deposit withdrawal at the nation’s largest banks, as the Fed is reporting that $114 billion were withdrawn from the largest 25 US banks over the first week of January, the largest fund outflow since the 9/11 attacks, even exceeding the pace of the outflow during the 2008 financial panic!  -- See report below

 30 Jan 2013
The US bank run was forewarned last year
and now its happening!!

This is what was forewarned late last year as everyone was focusing on the phony so-called "fiscal cliff," yet there was something occurring with the main banks and nobody seemed to report or notice this.  

This was then late last year:

US BANK RUN IMMINENT AS FDIC EXPANDED DEPOSIT INSURANCE ENDS DEC 31ST


With the media fixated on the fiscal cliff, no one seems to be noticing the fact that the FDIC’s expanded 100% coverage for insured deposits ends January 1st, 2013.
Submitted by SD Contributor AGXIIK:
As of January 2013 the FDIC stops offering 100% coverage for all insured deposits.  That amounts to $1.6 trillion in deposits, 85-90% deposited with the TBTF mega banks.  Once the insurance ramps back to $250,000 the FDIC risk amelioration offered to large depositors will cause them to flee from the insecurity of the much reduced FDIC coverage.  This money will rotate immediately into short term Treasury securities.  The treasury, in order to handle this flood of money, will immediately offer negative interest rates.  This financing will resemble the .5% negative interest rate offered by the Swiss and Germans on the funds flooding to their banks from Spain, Greece and Italy.
This will be a bank run much larger than the Euro banks flight to safety.
Then this is what occurred this year while Wall Street was celebrating with the short-term so-called "fiscal cliff" deal:

BANK RUN IN PROGRESS?  MASSIVE $114B WITHDRAWN FROM 25 LARGEST US BANKS FIRST WEEK OF JANUARY!

SD contributor AGXIIK warned readers months ago about the FDIC’s expanded deposit insurance which was set to expire Dec 31st, predicting that the expiring expanded deposit insurance enacted in the wake of the 2008 financial panic could trigger a bank run.
Many scoffed at the report and its implications, due to the fact that the story received zero attention by the likes of Bloomberg, CNBC, or even ZH.
It appears that the expiring expanded FDIC insurance has in fact triggered a massive deposit withdrawal at the nation’s largest banks, as the Fed is reporting that $114 billion were withdrawn from the largest 25 US banks over the first week of January, the largest fund outflow since the 9/11 attacks, even exceeding the pace of the outflow during the 2008 financial panic!
So once again we are being duped by what is really going, unless us "watchers" continue to report on what is really going on.  
And like Randy, who does an incredible job on reporting on the markets and the economy,  says  "All the dominoes are lined up.  The only thing that will cause them to fall will be the "Rapture," and I agree, but after this incredible US bank run, there really isn't much time left; maybe weeks or months at the most, then "BOOM,' we are gone!!!

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